Security of Payment Schemes Are Helpful

If you're working in the building and construction industry you've probably already come across payment disputes in some form or another. This cannot be prevented as the niche is such and there are always last minute additions and changes needed which also result in a rise in the incurred price.

Therefore payment disputes are always present and the courts used to be filled with such cases. Taking into account the amount of construction work going on and the number of disputes filed the government decided to come up with payment schemes termed as "Security of payment schemes".

They were setup in order to allow quick and adequate compensation based on the work involved and the charges incurred to your party. In most of the cases these settlements have happened and the right party has received whatever was due to them and this is the reason most people in the industry believe in these schemes.

The future is nothing like the past

Unlike in the past wherein payment disputes took up a lot of your time and resulted in costly arbitration processes the new schemes have allowed both parties to come to a consensus themselves or include themselves in an arbitration process through adjudication.

They're quick and effective

The adjudication method is one of the quickest and most effective ways of solving such disputes due to the simple process of resolution that it takes up. However, just like always for the process to come into force you would need to begin by filing a claim in the respective office.

Claiming your payment

The only reason that you're signing up for the security of payment scheme is in order to be able to claim your payment and therefore let's take a look into this step of the process.

As already mentioned, before this process can begin you would need to file a claim between the two parties involved and you would be termed as the claimant whereas the opposing party is the respondent. Just like in court, the respondent will fight against the claim.

However for the claim to have any weightage you need to make sure that you file it within the stipulated amount of time. The time period that you're allotted is mentioned on the scheme that you've signed up for or agreed upon by both the parties involved (In writing).

If at all any element of the contract is found to be missing you would be able to make claims at the end of every month.

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